Rectification of sales tax assessment was remanded for fresh consideration after waiver directions and personal hearing were required.

A rectification application under Section 55 of the Tamil Nadu General Sales Tax Act, 1959 was rejected despite the petitioner relying on a Government Order granting waiver of part of the tax liability on inter-State sales of hosiery goods for the relevant period, subject to conditions. The Madras High Court noted that an earlier identical matter had already been directed to be considered by the assessing authority in light of the governing legal position. The rejection order was set aside, and the matter was remanded for fresh consideration of the rectification request after taking the earlier directions into account and giving the petitioner an opportunity of personal hearing.

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Issues: Whether the order rejecting the petitioner's application for rectification under Section 55 of the Tamil Nadu General Sales Tax Act, 1959 was liable to be set aside and the matter remanded for fresh consideration.

Analysis: The petitioner sought rectification of the assessment on the basis of a Government Order granting waiver of a substantial portion of the tax liability on inter-State sales of hosiery goods for the relevant period, subject to specified conditions. The rejection of the application was challenged, and the Court noted that in an earlier identical matter directions had been issued for consideration by the assessing authority in light of the legal position. In these circumstances, the appropriate course was to restore the rectification petition to the file of the respondent and require a fresh decision after considering the earlier directions and after affording an opportunity of personal hearing.

Conclusion: The rejection order was set aside and the matter was remanded to the respondent for fresh consideration of the rectification application in accordance with law.

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